Shoprite supermarket group plans to exit both Malawi and Ghana

Shoprite, which is headquartered in South Africa, has now left six countries since 2020. The others are Kenya, Madagascar, Uganda and Nigeria. The brand is still present in Nigeria, but under different owners. 

In earlier years, Shoprite has also dabbled in the Egyptian, Zimbabwean, Tanzanian and Mauritian markets – without achieving long-term success. 

It continues to operate in various Southern African countries that are closer to its home market. Among these are Angola, Mozambique, Namibia, Botswana and Zambia. 

In South Africa, Shoprite is hugely successful and is the dominant supermarket player with an ongoing expansion strategy. Among its South African brands are Shoprite, Checkers, Usave (all supermarkets) Medirite (pharmacies), Checkers Liquorshop, Checkers Outdoor, and Petshop Science. Its Sixty60 home delivery grocery service has also become a brand in its own right. 

Persistent challenges faced by retailers 

Comments Business Insider Africa: “Shoprite’s move has revealed the persistent challenges faced by global retailers across several African economies, where currency volatility and shifting economic policies can quickly erode margins. 

“The company has encountered numerous obstacles in these regions, including unstable exchange rates, surging inflation, restrictive import regulations, and leases pegged to the US dollar – all of which have weighed on profitability. 

“The retailer’s strategic repositioning comes amid persistent operational headwinds across several African economies, including currency devaluations, supply chain disruptions, regulatory bottlenecks and disappointing returns on investment.” 

Adds Trendtype, the emerging markets consultancy: “The exit from Ghana and Malawi is not big news. Arguably, it could have come several years earlier, given the state of the economy in Malawi for the past decade, and in Ghana the past few years of trading have been tough.  

“But it does emphasise once more that multinational supermarket operator expansion in African markets comes with challenges, even for a business of the scale and sophistication of Shoprite.”